-4.40%
-18.99%
-30.03%
9.02%
66.26%
32.04%
11.20%
AI Spotlight on QTWO
Company Description
Q2 Holdings, Inc.provides cloud-based digital banking solutions to regional and community financial institutions (RCFIs) in the United States.The company offers Q2 Consumer Banking, a browser-based digital banking solution and comprehensive financial institution branded digital banking capabilities; Q2 Small Business and Commercial, a mobile and tablet digital banking solution; Q2mobile Remote Deposit Capture, a partnered solution that allows remote check deposit capture.
It also provides Q2 Sentinel, a security analytics solution; Q2 Patrol, an event-driven validation product; Q2 SMART, a targeting and messaging platform; and Q2 CardSwap that allows account holders receiving newly issued cards to automatically change their payment information.In addition, the company offers Q2 Gro, a digital account opening, and digital sales and marketing platform; Q2 Biller Direct, a bill payment solution; ClickSWITCH allows financial institutions to direct deposits to the end user.Centrix Dispute Tracking System, an electronic transaction dispute management solution; Centrix Payments I.Q. System, an ACH file monitoring and risk reporting solution; Centrix Exact/Transaction Management System, a fraud prevention tool; and Q2 Caliper Software Development Kit.
Futher, it provides Q2 Contextual PFM, which allows end users to add external accounts and view them together with internal accounts on digital banking home page; Q2 Goals that enables end users to establish and save towards specific savings goals; Q2 Cloud Lending, a digital lending and leasing platform; PrecisionLender platform, a cloud-based, data-driven sales enablement, pricing, and portfolio management solution; and Q2 BaaS, a portfolio of open API financial services.The company was formerly known as CBG Holdings, Inc.and changed its name to Q2 Holdings, Inc.
in March 2013.Q2 Holdings, Inc.was founded in 2004 and is headquartered in Austin, Texas.
Market Data
| Last Price | 77.56 |
| Change Percentage | -4.40% |
| Open | 79.35 |
| Previous Close | 81.13 |
| Market Cap ( Millions) | 4710 |
| Volume | 405534 |
| Year High | 112.82 |
| Year Low | 46.5 |
| M A 50 | 94.27 |
| M A 200 | 81.47 |
Financial Ratios
| FCF Yield | 2.64% |
| Dividend Yield | 0.00% |
| ROE | -7.87% |
| Debt / Equity | 104.50% |
| Net Debt / EBIDTA | 425.66% |
| Price To Book | 9.06 |
| Price Earnings Ratio | -121.73 |
| Price To FCF | 37.88 |
| Price To sales | 6.76 |
| EV / EBITDA | 114.05 |
News
- Feb -24 - Q2 Holdings: Buy This Little-Known Software Company As It Ramps Up RPOs And EBITDA
- Feb -19 - Buy And Hold These Ten Cheap Lithium Juniors Ready For A Potential Lithium Recovery From 2026 Onwards
- Feb -19 - Q2 Metals Ranks 9th on 2025 TSX Venture 50 List of Top Performing Companies
- Feb -13 - Q2 Holdings, Inc. (QTWO) Q4 2024 Earnings Conference Call Transcript
- Feb -13 - Q2 Holdings (QTWO) Q4 Earnings Meet Estimates
- Feb -12 - Q2 Announces Appointment of Andre Mintz to its Board of Directors
- Feb -12 - Q2 Holdings, Inc. Announces Fourth Quarter and Full-Year 2024 Financial Results
- Feb -06 - Wells Fargo Expands Its Commercial Banking Transformation with Q2 to Drive Collaboration Across Commercial Banking Teams
- Feb -04 - Merchant's PACT Announces Integration with Q2's Digital Banking Platform to Provide Card Acceptance Onboarding
- Jan -30 - Q2 Unveils 2025 State of Commercial Banking Report
- Jan -29 - Q2 Holdings, Inc. Announces Investor Conference Call to Review Fourth Quarter and Full-Year 2024 Financial Results
- Jan -26 - Q2 Holdings: Interesting Pullback For This Fintech Dwarf
- Jan -22 - Q2 Announces New Partnership with Alloy to Deliver Joint Fraud Monitoring Solution for Banks and Credit Unions
- Jan -13 - Wealth Access Announces Integration with Q2's Digital Banking Platform
- Jan -11 - Q2 Holdings: Capitalizing On Banking Consolidation For Topline Expansion
- Jan -03 - Zacks Industry Outlook Cognizant, Tyler, Guidewire and Q2 Holdings
- Jan -02 - 4 Stocks to Watch From the Robust Business-Software Services Industry
- Dec -25 - Q2 Holdings: Signs Of Slowing Growth And Fully Valued Premium Make It A Hold
- Dec -20 - Q2 Metals Announces Grant of Equity Incentive Awards
- Dec -14 - KBW Announces Index Rebalancing for Fourth-Quarter 2024
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Subscription
Expected Growth : 12 %
What the company do ?
Subscription from Q2 Holdings, Inc. is a digital banking platform offering online and mobile banking solutions to financial institutions, enabling them to provide customers with secure and convenient online services.
Why we expect these perspectives ?
Q2 Holdings' subscription growth is driven by increasing demand for digital banking solutions, expansion into new markets, and strategic partnerships. The company's cloud-based platform and innovative products, such as account opening and lending solutions, are attracting more financial institutions, resulting in a 12% growth rate.
Segment n°2 -> Services and Other
Expected Growth : 8 %
What the company do ?
Services and Other from Q2 Holdings, Inc. includes subscription-based SaaS fees, professional services, and other revenue streams, such as data analytics and marketing services.
Why we expect these perspectives ?
Q2 Holdings' Services and Other segment growth of 8% is driven by increasing demand for digital transformation in the financial services industry, expansion of existing customer relationships, and strategic partnerships. Additionally, the company's investments in cloud-based solutions, data analytics, and cybersecurity services are contributing to the growth.
Segment n°3 -> Transactional
Expected Growth : 9 %
What the company do ?
Transactional from Q2 Holdings, Inc. is a digital banking platform that enables financial institutions to provide customers with secure, user-friendly, and personalized online and mobile banking experiences.
Why we expect these perspectives ?
Q2 Holdings' transactional segment growth of 9% is driven by increasing adoption of digital banking solutions, expansion of existing customer relationships, and strategic partnerships. Additionally, the company's investments in cloud-based infrastructure and security enhancements have improved scalability and reliability, attracting new customers and driving revenue growth.
Q2 Holdings, Inc. Products
| Product Range | What is it ? |
|---|---|
| Q2 Digital Banking Platform | A comprehensive digital banking platform that enables banks and credit unions to provide their customers with a seamless online and mobile banking experience. |
| Q2 Sentient | An AI-powered customer service chatbot that helps financial institutions provide 24/7 customer support and improve customer engagement. |
| Q2 Biller Direct | A bill payment solution that enables customers to pay bills securely and efficiently through their online banking platform. |
| Q2 Treasury Management | A treasury management solution that helps businesses manage their cash flow, optimize investments, and mitigate risk. |
| Q2 CardSwap | A digital card management solution that enables customers to manage their debit and credit cards, set up alerts, and receive notifications. |
| Q2 Person-to-Person Payments | A person-to-person payment solution that enables customers to send and receive money securely and efficiently. |
| Q2 Account Opening | A digital account opening solution that enables customers to open new accounts online or through their mobile device. |
Q2 Holdings, Inc.'s Porter Forces
Threat Of Substitutes
Q2 Holdings, Inc. operates in the digital banking and lending industry, where substitutes are limited. However, the company faces competition from traditional banks and fintech companies that offer similar services.
Bargaining Power Of Customers
Q2 Holdings, Inc. has a diverse customer base, including community banks, credit unions, and fintech companies. While customers have some bargaining power, the company's strong brand and product offerings mitigate this force.
Bargaining Power Of Suppliers
Q2 Holdings, Inc. has a diversified supplier base, and the company is not heavily dependent on a single supplier. This reduces the bargaining power of suppliers.
Threat Of New Entrants
The digital banking and lending industry is rapidly evolving, and new entrants can easily disrupt the market. Q2 Holdings, Inc. faces a high threat of new entrants, which can impact its market share and revenue.
Intensity Of Rivalry
The digital banking and lending industry is highly competitive, with many established players and new entrants vying for market share. Q2 Holdings, Inc. faces intense rivalry from competitors, which can impact its pricing power and market share.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 54.93% |
| Debt Cost | 3.95% |
| Equity Weight | 45.07% |
| Equity Cost | 11.27% |
| WACC | 7.25% |
| Leverage | 121.85% |
Q2 Holdings, Inc. : Quality Control
Q2 Holdings, Inc. passed 5 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| BRZE | Braze, Inc. operates a customer engagement platform that provides interactions between consumers and brands worldwide. It offers data ingestion products, such as Braze software development kits that automatically manage data … |
| PAYC | Paycom Software, Inc. provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses … |
| RIOT | Riot Blockchain, Inc., together with its subsidiaries, focuses on bitcoin mining operations in North America. It operates through Bitcoin Mining, Data Center Hosting, and Electrical Products and Engineering segments. As … |
| SMAR | Smartsheet Inc. provides cloud-based enterprise platform to plan, capture, manage, automate, and report on work for teams and organizations. The company offers Dashboards for real-time visibility into the status of … |
| BSY | Bentley Systems, Incorporated, together with its subsidiaries, provides infrastructure engineering software solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company offers open modeling and open … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Paycom Software
A-Score
1-Year Total Return ->
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Smartsheet
A-Score
1-Year Total Return ->
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Q2 Holdings
A-Score
1-Year Total Return ->
4
Bentley Systems
A-Score
1-Year Total Return ->
5
Riot Blockchain
A-Score
1-Year Total Return ->
6
